April 22, 2009

The sports bubble pops, and the Nets can't help but notice

The layoffs of staffers working on sponsorships for the New Jersey Nets apparently reflect the new reality.

There are already many questions related to the planned Brooklyn arena, among them Frank Gehry's role and the cost of construction.

Given the example of the new baseball parks, there's less of an appetite for luxury suites. That would mean a decline in both revenues for the developer and the taxes expected. It also suggests that a new cost-benefit analysis is in order.